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Gamuda eyes RM22b construction wins in next 2 years

Gamuda eyes RM22b construction wins in next 2 years
Artist’s illustration for the Sydney Metro West-Western Tunnelling Package – pic source:

Gamuda eyes RM22b construction wins in next 2 years

AFTER delivering its second consecutive record-breaking year, Gamuda Bhd intends to secure another RM22 billion of new construction-related wins within the next two years.

“We are optimistic about achieving this target, given the strong pipeline of construction projects ahead, locally — including the Penang Light Rail Transit (LRT), Mass Rapid Transit (MRT) 3 and Pan Borneo Highway (PBH) — as well as the healthy infrastructure pipelines presented in Taiwan and Australia,” Gamuda group MD Lin Yun Ling said in the company’s 2023 annual report.

Over the course of the year, Gamuda secured about RM15 billion in new contracts, increasing its outstanding orderbook to RM25 billion, equivalent to four times its total construction revenue for the year.

Following its two infrastructure wins in Australia last year — for the Sydney Metro West-Western Tunnelling Project and Coffs Harbour Bypass — Gamuda has secured its third major project with the Black Hill to Tomago Package of Works for the M1 Motorway Extension to Raymond Terrace.

For the year ended July 31, 2023 (FY23), Gamuda posted RM9.1 billion in revenue, up 41% from the year before. Its overseas revenue more than doubled to RM4.7 billion, contributing more than half of the group’s top line this year. Amid a “flat domestic market”, Malaysia revenue remained at RM4.4 billion high.

Both the group’s engineering and property arms delivered record-breaking performances, Lin said.

In construction, top- and bottom-line performance reached all-time highs — driven largely by a seven-fold increase in Australian billings. The group’s construction orderbook hit a record high of RM25 billion, and property sales surged to RM4.1 billion, setting new records.

Providing some breakdown, Gamuda CFO Soo Kok Wong said Gamuda Engineering (GE) posted record-breaking construction orderbook, revenue and earnings as a seven-fold revenue surge from Australia cushioned a flat domestic division.

He said GE secured RM15 billion new contract wins culminating in the record RM25 billion construction orderbook.

With the “solid project pipelines”, he said construction revenue rose to a record-high RM6.2 billion, doubling its revenue last year. The division achieved all-time-high earnings of RM500 million, growing 20% from last year’s RM416 million, despite the completion of MRT Putrajaya Line project this year.

“The overseas businesses are now the key growth driver for the division. Spearheaded by Australia, the overseas operations contributed 60% of divisional revenue and one-quarter of divisional earnings,” he said in a statement in the annual report.

He noted that overseas construction revenue surged four-fold to a record RM3.5 billion from last year’s RM714 million due to Australia’s significant revenue surge (seven-fold increase) as overseas earnings surged to RM108 million.

With a large construction orderbook, he said GE expects to double its revenue in the upcoming financial year.

Gamuda eyes RM22b construction wins in next 2 years


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